Analyzing The Opportunities For Horizontal Expansion For The Coca Cocla Company

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A

PROJECT REPORT
ON

“Analyzingtheopportunitiesforhorizontalexpansionofco
ca cola company”

SUBMITTEDTO

UNIVERSITY OF PUNE

MANEESH CHAUHAN

( BATCH-2010-2012)

UNDER THE GUIDANCE OF

PROF. RAMDAS KENDRE

SKNSSBM, VADAGAON,PUNE-411041
HINDUSTAN COCA-COLA BEVRAGES

ACKNOWLEDGEMENT

Some Says “Managers are born and some says managers are made”. I was also
in some dilemma before commencing my summer internship. But after the
successful completion of my summer internship I came to know that managers are
made if they are guided properly and are motivated to work willingly towards
fulfillment of specific goal.

It is with sage of gratitude, acknowledge the efforts of whole hosts of


a sense I
well - wishers who have in some way or other contributed in their own special ways
to the success and completion of this project.

First of all, I would like to thank Mr. MayurTiwari (RSM dehradun) , from the bottom
of my heart, without his help it would have been a dream only to carry out the
project work. He is the only person who takes all decisions by considering
everyone’s view. He is the person who takes care of the sales of Coca Cola of
Uttrakhand state always motivates people to increase sales. He also makes new
strategies time and again to give Coca Cola some edge over competitors. One can
say he is the one- man army of Coca Cola , Dehradun branch.

My profound sense of obligation goes to Mr. Sachin Pachauri (ASM ) who takes care
of the supply . He also gives proper guidance to all management trainees and staff.

All the sales officers of Coca Cola ,Dehradun who have helped me a lot during the
course of my project. They were of great help to me in every aspect and enlivened
us to win the problem head that I faced during this project.

At last I convey my sincere thanks COCA COLA, DEHRADUN for their helping hand
that I always found extended to me whenever I needed.

With Sincere Thanks

Maneesh Chauhan

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CERTIFICATE

ThisistocertifythattheProjectReporttitled“”Analyzingtheopportunitiesfor

horizontalexpansionofcocacola
company”inHINDUSTAN COCACOLA BEVERAGES Ltd is the
bonafide work carried out by Mr. Maneesh Chauhan of SKNSSBM , Vadagoan
for the fulfillment of M.M.M degree of the University of Pune.

He has worked under our guidance and direction. His Work is found to
be satisfactoryandcompleteinallrespect.

Signature of Guide

Date:

Place:

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DECLARATION

I declare that the project entitled’ Coca Cola Ltd. In Dehradun is a record of
independent research work carried out by me during the academic year 2010 -2012
under the able guidance of my project guide Prof. Ramdas kendre of Sinhgad
Institute of Management, Vadagaon .
I also declare that the project is the result of my effort and has not been submitted to
any other University or Institution for the award of any degree, or personal favor
whatsoever. All the details and analysis provided in the report hold true to the best
of my knowledge.

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COMPANY CERTIFICATE

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TABELS OF CONTENTS

S. NO. CONTENTS PAGE NO.

1. Executive Summary 08-16

2. Introduction 17-17

3. Objectives of the study 18-20

4. Need & Scope 21-22

5. Research methodology 23-29

6. Limitations 30-43

7. Analysis & findings 44-44

8. 45-46

9. Recommendation & suggestions 47-48

10. Suggestions & Conclusion 49-63

11. Questionnaires 64-65

12. Exhibit 66-68

13. Bibliography 69-69

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company Name
HINDUSTAN COCA COLA BEVRAGES PVT. LTD.
Industry: Consumer product / FMCG products HINDUSTAN COCA
COLA BEVRAGES PVT. LTD.
Types of Company: Private Limited Company, Foreign Based
Company
Location: HYDERABAD
Sales Office:

Plant: Ameenpur Village, patancheru Mandal, Medak Dist – 502319.

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INTRODUCTION

“Marketing is a social and managerial process by which individuals

and groups obtain what they need and want, through creating,

offering and exchanging products of value with others”.

- Philip

Kotler. Marketing includes all those activities having to do with

effecting changes in the ownership and possession of goods and

services. It is that part of economics which deals with the creation of

time, place and possession utilities and that phase of business activity

through which human wants are satisfied, by the exchange of goods and

services for some valuable consideration.

- American Marketing

Association. Marketing is the process of discovering and translating

consumer wants into product and service specifications and then in turn

helping to make it possiblfor more and more of consumers to enjoy

more and more of these products and services.

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Marketing consists of analyzing marketing opportunities, researching

and selecting target markets, designing marketing strategies, planning

marketing programs and organizing, implementing and controlling

marketing effort.

Companies have to identify long and short term marketing opportunities

and research the selected market by measuring and forecasting

attractiveness of the given market. Having selected the market, the

companies need to develop a differentiating and positioning strategy for

the target market.

The marketing strategy must be transformed into marketing programs

by deciding on marketing expenditures and the marketing mix. The final

step is organizing the marketing resources and implementing and

controlling the marketing plan.

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FEW WORDS ABOUT THE COMPANY

Every person who drinks a Coca-Cola enjoys a moment


of refreshment and
shares an experience that millions of others have served. All of those
individual
experiences combined have created a worldwide phenomenon – a
truly global
brand. On the distribution front, 10-tonne trucks, open-bay three
wheelers
that can navigate the narrow alleyways of Indian cities, ensure
availability of
our brands in every nook and corner of the country. The company-
owned
Bottling arm of the Indian Operations, Hindustan Coca-Cola Beverages
Private
Limited is responsible for the manufacture, sale and distribution of
beverages
across the country. A career at Hindustan Coca-Cola Beverages Pvt.
Ltd. is truly
a one-of-a-kind experience. Come taste life at Coca- Cola .

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HISTORY

Coca-Cola Company, nourishing the global community with


the world’s largest
selling soft drink since 1886, returned to India in 1993 after a gap
of 16 years
giving a new thumbs-up to the Indian Soft Drink Market. In the same
year, the
Company took over ownership of the nation's top soft-drink brands
and bottling
network. No wonder, our brands have assumed an iconic status in the
minds of
the consumers. Coca-Cola serves in India some of the most recalled
brands
across the world including names such as Coca-Cola, Diet Coke,
Sprite, Fanta,
Thums Up, Limca, Maaza and Kinley (packaged drinking water),
Minute Maid ,Pulpy Orange.

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Objectives of the study:

1. To understand & explain the Horizontal Expansion Concept with


respect to HCCB operations at retail end.

2. To enlist the benefits of Horizontal Expansion for the company


at retail end.

3. To develop the business, expand the market coverage,


acquisition of retailers, retention strategies and
maintaining customer relations

4. To identify if there exists any training requirement for the


improvement of sales to its sales team?

5. To study the behavior of sales man and distributer towards


shopkeeper.

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SCOPE OF STUDY

Horizontal merger provides the following advantages to the companies


which are merged:

1) Economies of scope
The notion of economies of scope resembles that of economies of scale.
Economies of scale principally denote effectiveness related to
alterations in the supply side, for example, growing or reducing
production scale of an individual form of commodity. On the other hand,
economies of scope denote effectiveness principally related to alterations
in the demand side, for example growing or reducing the range of
marketing and supply of various forms of products. Economies of scope
are one of the principal causes for marketing plans like product lining,
product bundling, as well as family branding.
2) Economies of scale

Economies of scale refer to the cost benefits received by a company as


the result of a horizontal merger. The merged company is able to have
bigger production volume in comparison to the companies operating
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separately. Therefore, the merged company can derive the benefits of


economies of scale. The maximum use of plant facilities can be done
by the merged company, which will lead to a decrease in the average
expenses

The important benefits of economies of scale are the following:

Synergy

Growth or expansion

Risk diversification

Diminution in tax liability

Greater market capability and lesser competition

Financial synergy (Improved creditworthiness, enhancement of


borrowing power, decrease in the cost of capital, growth of value per
share and price earning ratio, capital raising, smaller flotation expenses

Motivation for the managers

For attaining economies of scale, there are two methods and they are
the following:

Increased fixed cost and static marginal cost

No or small fixed cost and decreasing marginal cost

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One example of economies of scale is that if a company increases its


production twofold, then the entire expense of inputs goes up less than
twofold.

Significance of the study

Through this study company can know about its growth compared to
its major competitor
PepsiCo.

This study will also help to the company to know about their new
concepts position in the market
This study will also help to the company to know about its
promotional activities involved in advertising.
Through this study company will know about the availability of
its products in the market.

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This study is helpful to find out the sales trends of the Coke products
and its effect on consumers value and satisfaction.
This study is helpful to find out the number of outlets coming under
RED concept
This study is also helpful to find out the outlets efficiency which are
coming under RED.
This study directly deals with interaction of different kinds of people
in the organization which helps me to understand the corporate
communication system.
This study also helps me to understand how the marketing strategy
like Pull and Push works in the corporate. (For push – at the time of
pulpy promotion, for pull at the time of more demand of sprite.)

Research Methodology:
Research Design:

Once the problem is identified, the next step is the research


design. Research design is the basic framework of rest of the study. A
research design specifies the methods and procedures for conducting
particular study.

In this project we are following descriptive research design.

Source of Data:

There are two types of data:

1. Primary data
2. Secondary data
Primary Data:

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The primary data is fresh information collected for a specified study.


The primary data can be gathered by observational, experimentation and
survey method. Here the entire scheme of plan starts with the definition
of various terms used, units to be employed, type of enquiry to be
conducted, extent of accuracy aimed etc.,

The methods commonly used for the collection of primary data are:

1. Direct personal investigation, where the data is collected by the


investigator from the sources concerned.
2. Indirect oral interviews, where the interview is conducted directly
or indirectly concerned with subject matter of the enquiry.
3. Information received through local agencies, which are
appointed by the investigator.
4. Mailed questionnaire method, here the method consists in
preparing a questionnaire (a list of questions relating to the
field of enquiry and providing space for the answers to be filled
by the respondents.), which is mailed to the respondents with a
request for quick response with in the specified time.

In this project mailed questionnaire method is used to collect the


primary data.

Secondary Data:

The secondary data refers to data, which already exists. The secondary

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data collect from internal records, business magazines,


company websites and Newspapers.

Research instruments:

For the collection of primary data a structured questionnaire was


prepared covering various aspects of the study.

The questionnaire contains closed-ended and dichotomous questions.

Sampling Procedure:

It is a procedure required from defining a population to the actual


selection of the sample.

PROSESS
The study is based on Primary data and Secondary data. Secondary
Data was collected from the Company’s website and MD’s Sales
Presenter as well as Primary Data was collected through structured
questionnaire. The questionnaire was designed by keeping all the
objectives of the study in mind.
The type of research which is used to conduct survey was.
Sample Unit:

Sampling units are outlets owners/ shopkeepers selling soft drinks.


Sample Size:
Sample Size of 50 outlets.
Sample Technique:

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Sample Technique is Simple Random Technique.

Method of data collection:


Method of data collection is survey method.
Universe:
Dehradun.

Limitations

1. The training was for shorter period of time that is why it was
not possible to carry out a detail study.

2. The sample size was limited.

3. The strategies of the company changes very frequently it is


difficult to make exact recommendation.

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What is Horizontal Expansion?

Expansion of business capacity through the absorption of facilities or


buildings as well as through the acquisition of new equipment to
handle an increased volume in sales in which the business is already
engaged. In microeconomics and strategic management, the term
Horizontal Expansion describes a type of ownership and control. It is
a strategy used by a business or corporation that seeks to sell a type of
product in numerous markets. Horizontal Expansion in marketing is
much more common than Vertical Expansion is in production.
Horizontal Expansion occurs when a firm is being taken over by, or
merged with, another firm which is in the same industry and in the
same stage of production as the merged firm,
E.g. Pepsi has adopted strategy of Vertical Expansion by which
Pepsi wants to improve it’s sale from Coke monopoly outlets, means

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Coke’s monopoly outlets are being taken over by Pepsi now in this
condition to improve it’s sale Coke need to open new outlets which is
called Horizontal Expansion Strategy. A monopoly created through
Horizontal Expansion is called a Horizontal Monopoly.
This is the expansion of a firm within an industry in which it is
already active for the purpose of increasing its share of the market
for a particular product or service.

Horizontal Expansion:
It is defined as expanding a business beyond what is presently
known as its core functions. Best illustrated by example, a typical case
of horizontal expansion was when ProBlogger decided to introduce their
Job Boards. While ProBlogger’s core functions was providing bloggers
with tips on how to make money through their blogs, the team behind
the site identified that a job board could compliment what they already
provided their “customers” (readers) with, and at the same time create a
new cash flow and increase their revenue (by charging for the listings on
the job board).

This is a type of horizontal expansion where you expand on your


already existing brand and go beyond your core activity in order to
create new and (hopefully) rewarding cash flows that by calculation
will, at some point, make your business more profitable.

Another type of Horizontal Expansion is to create a completely new


section of your company, and only tie them together under an umbrella.
In the world of small, independant online publishers a feasible example
would be that if you run a popular blog on a certain videogame, you can
start a completely new blog on another videogame, and tie them
together only by a company/network blog or website. Of course, the
other method of expanding horizontally would be to simply extend the
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topic of your current blog to include the additional new videogame.

When developing an market business you will always be looking for


ways to maximize your revenue, and expanding your fields of operation
is often a possibility that surfaces when you are evaluating the future of
your businesses. While common to most of those who have formally
studied business management, the concepts of Vertical Expansion and
Horizontal Expansion are not always recognized by small time internet
entrepreneurs such as myself.

Generally when facing the option of expansion, you will have two initial
paths to choose from, and the way we usually seperate them is by
classifying them as horizontal or vertical. So what separates these two
options?

Vertical Expansion:
It is often referred to as Vertical Integration as well, but as I
will point out shortly, for independant online publishers, expansion is a
far more accurate word than integration. When you expand your
business vertically, you try to increase your profits by expanding and
improving on your existing core activities, and moving tasks you’ve
previously outsourced inhouse.

For larger companies an example of vertical expansion


could be to purchase or merge (hence the term Vertical Integration) with
the company that handles their logistics. Similarly a possible vertical
expansion for a blogger could be to sell his own ads instead of using
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adsense, but seeing how buying adsense off of Google is probably


not very likely, the term expansion makes more sense in this case
than integration.

Common to both types of expansions are that they both involve a certain
amount of risk, horizontal even more so than vertical. When expanding
horizontally as an online publisher you will be required to either
outsource the information you will provide, or climb a steep curve of
learning in order to gain the proper insight in order to be able to provide
quality content on the new subject.
When expanding vertically, the curve of learning can be equally steep,
or even steeper, because often it means that you will have to learn a
completely new trade that you don’t have any prior experience with
what so ever. Your already existing access to knowledge, whether it is
in yourself or already employed people, should therefore be considered
when considering either forms of expansions

Objective of horizontal expansion plan OF COCA COLA

A plan which is intimately connected to horizontal merger is


horizontal expansion. This refers to the expansion or growth of a
company in a sector that is presently functioning. The aim behind a
horizontal expansion is to grow its market share for a specific
commodity or service.

The objective behind this type of mergers is to achieve economies of


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scale in the production procedure through carrying off duplication of


installations, services and functions, widening the line of products,
decrease in working capital and fixed assets investment, getting rid of
competition, minimizing the advertising expenses, enhancing the market
capability and to get more dominance on the market.
1. to increase the market share
2. to develop new markets for the expansion of coca cola
3. to identify new opportunities for the new market
4. to get rid of competition and reduce cost

The objective should be thought from different perspective point Of view


mentioned below

coca cola vertical integration

coca cola soft drink

BCG matrix of coca cola

Product life cycle of coca cola

Coca cola competitor

ACCORDINGTO COCACOLACOMPANY:

When we will entered into the market then to approach the outlet
we have to observe the type of outlet before we visited the outlet they
have been using from which kind of products like as pepsi. If they are

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being used to display the pepsi products. After we should visited the
pepsi outlet then we need to introduce our coca cola products to that
outlet. After we should introduce our products to explain the profits then
we can interact closely with them. We need to observe which type of
outlet they are using after we observed the outlet models. If it is the
grossory, convenience, E&D models. What type of cooler is expecting
from our company? We should provided our cooler to satisfy them as
well as simantaneuously, to expand our market business respectily.

Reason Of Horizontal Expansion?

The ultimate objective of coke is to acquire more customer and serve


them properly. While doing Horizontal Expansion take care to the
competitor’s strategy. The main competitor is PEPSI, who has opted
Vertical Expansion to generate more sell however Coke do not
believe on Vertical Expansion because Vertical Expansion has limited
preview so COKE is great believer in Horizontal Expansion and this
strategy helped to the company to maintain its leadership in the soft
drink industry.
India is a big country having diversified taste and appearance
and same character is reflected in their demography. Horizontal
Expansion helps the company to serve the more people and more
customers touch point because in the waste country many customers
commutes.

How to Do Horizontal Expansion

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To do Horizontal Expansion more efficiently we made a profit story and


talk to the shopkeepers according to that story.
Story
Salesperson – hello sir, I am from Coke and I have a proposal that will
surely increase your income. May I present you?

Shopkeeper – yes please present it

Salesperson - Sir if you will start to sell coke then your overall sale will be
increased and it is not tough to sell coke because Coke is the leader in
beverage industry and a very well known brand.

Shopkeeper- yes, but how it can increase my overall sale?

Salesperson - Sir, you are selling Chips, Pastry and snacks. And these
products have a very good combination with cold drink. If a person wants
to purchase any of these products then it is quite possible that he will
purchase Coke and vice versa.

Shopkeeper – But how Coke can increase my profit?

Salesperson – Sir if you are really interested to explore through Coke, you
may be able to sell 2 cases of 200ml, 1 case of 300ml, 1 case of 600 ml
and 1 case of 2 liter. And for start selling Coke you need to invest only Rs.
420. We will provide you 3 empty carets

Weight of Product Rate of QT M.R.P.(R Revenue(R Profit(Rs.


(ML) case(Rs.) Y. s.) s.) )
200 168 24 8 192 24
300 214 24 10 240 26
600 488 24 22 528 40
2000 455 9 55 495 40

Sir your daily profit from coke (in Peak season) = Rs.

154 Profit per month (in Peak season) = Rs. 4620

Profit of whole season = Rs. 13860

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(BecausethepeakseasonforCokeisonlyof3months)

Profit of rest of the 9 months = Rs. 20790

(Because as per the Coke assumption income in the off season is


decreasedbyhalfincomparisontothePeakseason)

Profit of whole year =

Rs.34650 Your investment = Rs. 1913

Your ROI = 34650 * 100/1913

= 1811.29%

Shopkeeper – But I do not think this much will work what about those
stuffs that needs to support trading of Coke and I have to provide them like
electricity, ice etc.

Salesperson – Sir that’s a really nice question, we can understand your


anxiety and we have to offer much more for this. We have minimum Rs.
10 offer on 200 and 300 ml and Minimum Rs. 20 on Pet bottles. More over
if you are keeping your refrigerator for the storage purpose of Coke if will
be all right as the refrigerator can work by consuming power as low as 2
units per day which will cost you Rs. 8 per day.

So, what you have to say about our offer?

Shopkeeper – Yes, I think it will be a nice idea to accept your offer.

Salesperson – Thank you sir and Congratulation (ShakingHands)I will


be dropping my products within 10 minutes as I have the carrying vehicle
with me and within next 15 minutes you are all set to go for selling Coke.

On some shops we set refrigerators and to keep a refrigerators we need to


collect 1 photo copy of Voter ID card or Rashen Card, 1 photo copy of
electricity bill and 1 passport size photo of shopkeeper.

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Benefits of horizontal expansion:


Through this study company can know about its growth compared to
its major competitor
PepsiCo.

This study will also help to the company to know about their new
concepts position in the market
This study will also help to the company to know about its
promotional activities involved in advertising.
Through this study company will know about the availability of
its products in the market.
This study is helpful to find out the sales trends of the Coke products
and its effect on consumers value and satisfaction.
This study is helpful to find out the number of outlets coming under
RED concept
This study is also helpful to find out the outlets efficiency which are
coming under RED.
This study directly deals with interaction of different kinds of people
in the organization which helps me to understand the corporate
communication system.
This study also helps me to understand how the marketing strategy
like Pull and Push works in the corporate. (For push – at the time of
pulpy promotion, for pull at the time of more demand of sprite.)
 Provides Incremental Volume & Revenue for Business

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 By horizontal expansion there will be more outlets of our product


In the market which will sell our product in more quantity. This
will generate incremental revenue for the business.

 Helps Improve Route Productivity

 Increase in market power over supplier and downstream market


channels

Advantage of horizontal expansion over vertical


expansion:

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Both expansion techniques are meant for increasing sales volumes.


But in horizontal expansion company can earn more profits by
spending less. Let’s see the profit story of horizontal expansion

Measure 2008 20 0 9

N u m b e r o f E x is tin g O u tle ts 10000 10000

T o ta l V o lu m e ( in L a c P h y C a s e s ) 50 55

V P O in P h y C a s e s 500 550

N u m b e r o f N e w O u tle ts 2000

N e w O u tle t V P O 125

In c re m e n ta l V o lu m e ( in L a c P h y
2 .5
Cases)

G ra n d T o ta l V o lu m e in L a c
50 5 7 .5
Cases)

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Above tables clearly indicate the importance of opening new outlets.


By doing vertical expansion only growth in profit was not very

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effective but because of opening just 200 new outlets sales increased
to a large extent. Total profit margin and return on investment also
increased.

OUTCOME OF THE PROJECT


Apart from the other benefits of horizontal expansion, its main
benefit is to generate incremental revenue for the company. During
the project I studied strategies and analyzed the market. My major
job was to use different tools provided by the company for horizontal
expansion like refrigerator, ice box etc. and to open outlets for coca
cola products. With my other team mates I targeted the market of
Dehradun and our outcome is as follows:-
No. of New outlets in Patel nagar , BHEL = 10
No. of New outlets in clementown = 5
No . of New outlets In Rajpur road = 10 No.
of New outlets in other areas = 25

INCREMENTAL REVENUE GENERATED FOR


THE
COMPNAY:
Avg. Sales at each outlet = 3 cases per outlet
Total Sales = 50*3 = 150 cases per day

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Avg price per case = 200 Rs( assumed)


Total Revenue = 200*150
= Rs. 30,000 per day

(Note: see appendices for the list of outlets)


Hence we can see the huge revenue generated by the horizontal
Expansion. It also increased the visibility and market share of the
coca cola products.

INDUSTRY PROFILE

Carbonated Soft Drinks

At the core of the beverage industry is the carbonated soft-drink


category. The dominant players in this area (Coca Cola, Pepsi, and
Cadbury-Schweppes) own virtually all of the North American market’s
most widely distributed and best-known brands. They are dominant in
world markets as well. These companies’ products occupy large
portions of any supermarket’s shelf space, often covering more territory
than real food categories like dairy products, meat, or produce.

As with many mature retail industries, the beverage giants have a


problem – growth in the sales of their flagship carbonated products are
at a near standstill in the key U.S. market, with 1% growth or less. After
years of rapid growth, it seems that the average American can’t drink
any
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more flavored, fizzy soda water. To remedy that, these three companies
are rapidly expanding both globally as they enter and promote new
markets for existing products and locally, as they add products from
adjacent beverage categories in the supermarket, in categories that are
still expanding. We'll talk about these areas in a later posting.

The prototype of all marketing and branding struggles, the “Cola Wars”
keep expanding. The Pepsi and Coca Cola keep rolling out the big guns:
dueling pop stars, and new branded products in the form
of “Vanilla Coke” and “Pepsi Blue.” . They are fighting on the TV, in
the fast-food restaurants, and in the supermarkets; they are also dueling
in the schools. One of the biggest pushes of the last few years has been
convincing school districts, universities, and other institutions to go all-
Coke or all-Pepsi, in return for a (small) cut of the gross sales.

Selling costly sugared water and building an increasing demand for it,
even in Third World countries, involves marketing in its purest form,
unsullied by any preexisting need or local tradition. Markets in Eastern
Europe, China, India, and Mexico, among others, are expanding fast,
and both Coke and Pepsi are finding local partners (bottlers) in these
countries to keep extending their reach. And while the American market
may be mature, there’s still an opportunity worldwide to replace hot
beverages like coffee and tea that require some preparation with these
cold, iconic.

All this worldwide activity can’t disguise an unpleasant core reality for
the vendors: U.S. carbonated soft drink sales increased only 0.5% in the

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HINDUSTAN COCA-COLA BEVRAGES

year 2002. Although total sales for the industry was up slightly, per
capita consumption was down for the third year in a row In other words,
domestic soft drink growth is not keeping pace with population growth.

Overall soda market

In fact, Coke and Pepsi have a third major rival on the bottled soft drink
shelves, namely Cadbury-Schweppes. The big three carbonated
beverage makers now exist in a stable oligopoly those changes only by
small increments and which controls over 90% of the market. Over the
years, Cadbury-Schweppes (the result of a merger between a British
candy company and a British beverage company) has improved its
position by acquiring key brands in the US, namely Dr. Pepper andSeven
-Up, along with & Wand Canada Dry.
A

In past decades, the carbonated beverage section had been the


beneficiary of an amazing record of growth, where consumption
has more than doubled over the past 25 years. Americans consume twice
as much soda as they did 25 years ago, up from 22 gallons per person
per year to over 56.

In 2000, these three companies had almost exactly the same share of
the U.S. market they had in 1999, namely:

Company Brands
Percentage
Coca Cola 44.1% Coke, Sprite, Barq, Fanta, Mello

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HINDUSTAN COCA-COLA BEVRAGES

Yello, etc.
PepsiCo 31.4% Pepsi, Mountain Dew, Mug, Slice,
etc.
Cadbury/Schweppes 14.7% Seven-Up, Dr. Pepper,
Schweppes, A & W, Canada Dry,
Sunkist, Squirt, etc.

While individual flavors go up and down, the relative market share of


the big three changes at a glacial rate. The next biggest North American
soda company, the Canadian-based Cott Beverage Company, had only a
little over 3% of the market and that company specialize in supplying
private label soda to supermarkets and other chains.

In 2001, however, Cadbury acquired moribund RC Cola, giving it a cola


drink to battle against the big guys. This gave the company more shelf
position and immediately gave the RC Cola brand, long a distant also-
ran with weak marketing muscles, more sales and market presence.
Pepsi gave itself a small boost because of the popularity of newly
introduced Mountain Dew Code Red, a hyper-caffeinated soda. Coke’s
numbers declined slightly. The market share figures in 2001.

Company Percentage
Coca Cola 43.7%
PepsiCo 31.6%
Cadbury/Schweppes 15.8%

It’s pretty indicative of this mature market that the only major move in
market share comes through a takeover. Moreover, the takeover targets
that are left are so small that the biggest remaining brand doesn’t make
Page 36 of 36
HINDUSTAN COCA-COLA BEVRAGES

more than 1% difference in total volume.

New age beverages

In the last part of our look at the beverage business, we noted that
oligopolies Coca Cola, PepsiCo, and Cadbury Schweppes had "flooded"
a mature market, so that there was minimal growth potential in the
carbonated beverages category. So, how can these companies grow,
something all oligopolies are compelled to do? First, by expanding
internationally. Second, by acquiring or adding new products in other
beverage areas, which show both faster growth and less well-defined
competition. In fact, other beverage types have only in the last decade
come into focus as separate, important categories.

So the search for new beverage footholds has become the second front
of the Cola Wars. There is a scramble for new territories in beverage
shelf space, and Coke and Pepsi are investing heavily. These
alternative beverages areas were established by startup or small cap
companies, including Snapple and Arizona Iced Teas, Ocean Spray
and Nantucket Nectars, SoBe and Calistoga. The emerging categories
began to look like both a threat and an opportunity for the big three.

In 2001, according to Beverage Age Magazine. The segments of


alternative or "New Age" beverages ranked by order of sales, were:

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Company Profile

In general, The Coca-Cola Company (TCCC) and/or subsidiaries only


produces
(or produce) syrup concentrate which is then sold to various bottlers
throughout
pharmacist John Stith Pemberton in 1886. The Coca-Cola formula
and brand
was bought in 1889 by Asa Candler who incorporated The Coca-Cola

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Company
in 1892. Besides its namesake Coca-Cola beverage, Coca-
Cola currently offers
nearly 400 brands in over 200 countries or territories. The company
operates a
franchised distribution system dating back to 1889 where TCCC only
produces
syrup concentrate which is then sold to various bottlers throughout
the world
who hold an exclusive territory. The Coca-Cola Company
is headquartered in
Atlanta, Georgia. Its stock is listed on the NYSE and is part of
DJIA and S&P
500

All India Division COBO’s are now ISO 14001


certified

All 25 of the Divisions Company-owned bottling plants have gained


the international standard ISO 14001 Environment Management

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System certificate.

The ISO 14001 certificate is the internationally recognized standard


of Environmental Management.
A company must demonstrate management commitment, the total
involvement of all employees and a compliance with applicable
regulatory and internal company standards.
Strict division compliance with eKO system ensured that the bottling
plants were ready to meet the tough evaluation criteria and standards
of the ISO auditors.

PRODUCTS AND BRANDS

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Thums Up
Page 41 of 41
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Type Cola
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
Related products Coca-Cola, Pepsi, Campa Cola
Thums Up is a carbonated soft drink (cola) that is very
popular[citation needed] in India, where its bold, red thumbs up logo
is common. It is similar in flavor to other colas but has a unique taste
reminiscent of betel nut. Introduced in 1977 to offset the expulsion of
The Coca-Cola Company and other foreign companies from India,
Thums Up, Limca, and Campa Cola gained nationwide acceptance.
The brand was bought out by Coca-Cola who later re-launched it to
fight against Pepsi after unsuccessful attempts at brand killing.

Background
During late 1970s, the American cola giant Coca-Cola was banned by
the Indian government. Following this, the Parle brothers, Ramesh
Chauhan and Prakash Chauhan, along with then CEO Bhanu Vakil,
launched Thums Up as their flagship drink, adding to their portfolio
of older brands Limca (lime flavour) and Gold Spot(orange flavored).
Thums Up was basically a cola drink, but the company never claimed
it as such. The formula was just as closely guarded as the famous
Coke formula. During the same time, the owners of Coca-Cola’s
bottling plant, Pure Drinks Ltd., launched Campa Cola and Campa
Orange, both of which had a higher dose of carbon dioxide.
The Thums Up logo was a logo showing a red thumbs up hand
gesture with a slanted white serif typeface. This would later be
modified by Coca-Cola with blue strokes and a more modern-looking
typeface. This was mainly done to reduce the dominant red color in
their signage.
The picture shows the thums up mountain or thums up
pahaad(in Hindi)manmad hills which has a natural top like thums
up
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logo and is a popular sight from trains .Its famous caption until the
early `80s was, “Happy days are here again”, coined by then famous
copywriter Vasant Kumar, whose father was spiritual philosopher U. G.
Krishnamurti. Later it was changed to "Taste the thunder!”.

Market
sIn 1990, when Indian government opened the market to
multinationals, Pepsi was the first to come in. Thums Up went up
against the international giant for an intense onslaught with neither
side giving any quarter. With Pepsi roping in major Indian movie
stars like Juhi Chawla, to thwart the Indian brand, Thums Up
increased its spending in the Cricket sponsorship. Then the capacity
went from 250ml to 300ml, aptly named MahaCola. This nickname
gained popularity in smaller towns where people would ask for
"Maha Cola" instead of Thums Up. The consumers were divided
where some felt the Pepsi’s mild taste was rather bland.
In 1993 Coca-Cola re-entered India after prolonged absences
from 1977 to 1993. But Coca-Cola’s entry made things even more
complicated and the fight became a three-way battle. That same year,
in a move that baffled many, Parle sold out to Coke for a meagre US$
60 million (considering the market share it had). Some assumed Parle
had lost the appetite for a fight against the two largest cola brands;
others surmised that the international brands seemingly endless cash
reserves psyched-out Parle. Either way, it was now Coca
-Cola’s, and Coke has a habit of killing brands in its portfolio that
might overshadow it. Coca-Cola soon introduced its cola in cans
which was all the rage in India, with Thums Up introduced alongside,
albeit in minuscule numbers. Later Coca-Cola started pulling out the
Thums Up brand which at that time still had more than 30% market
share.

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Limca
s
Type Lemon-lime soda
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1977
Limca is a lemon and lime flavored carbonated soft drink made in India
and certain parts of the U.S. It is less bubbly than its American
counterparts like Seven Up and Sprite, and it has a slight flavor of
ginger.
In 1992, when the government allowed Coca-Cola to return, at the
same time as it admitted Pepsi for the first time, Coca-Cola bought Limca,
Thums Up,
Maaza and other drink brands.
Like other sodas, Limca is generally sold in glass bottles within
India, which are returned to the store or restaurant after the contents have
been drunk. The bottles are sent back to the manufacturer, washed and reused,
because they are more expensive than the soda itself.

Rates and sizes


2 ltr.plastic bottles cost Rs.55 600ml plastic bottles cost Rs. 22 300ml glass bottles cost Rs

Limca also publishes the Limca Book of Records, a record book


similar to the
Guinness Book of Records. The Limca Book of Records details feats,
records and other unique statistics from an Indian perspective.

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Sprite
Type Lemon-lime
Manufacturer The Coca-Cola Company
Country of origin Germany
Introduced 1961
Sprite is a clear soda, lemon-lime flavored, caffeine free soft drink,
produced by the Coca-Cola Company. It was introduced to the United
States in 1961. This was Coke's response to the popularity of 7 Up,
which had begun as "Lithiated Lemon" in 1929. It comes in a
primarily green and blue can or a green transparent bottle with a
primarily green and blue label.

History
Originating in Germany as Fanta Klare Zitrone ("Clear Lemon
Fanta"), Sprite was introduced to the United States in 1961 to
compete against 7-Up. In the 1980s, many years after Sprite's
introduction, Coke pressured its large bottlers that distributed 7 Up to
replace the competitor with the Coca-Cola product. In large part due
to the strength of the Coca-Cola system of bottlers, Sprite finally
became the market leader position in the lemon-lime soda category in
1989
Global naming Sprite, as a lemon-lime soda, is referred to by
consumers around the world in a variety of ways. It is called
lemonade in Australia and New Zealand. In Ireland and Canada,
Sprite and 7-up are interchangeable and, when asked, a person may
say Sprite or 7-up to mean the same drink. In South Africa, Sprite
and Schweppes Lemonade are almost interchangeable. In some parts
of Switzerland, Sprite (or any other type of lemonade) is also known
simply as citra.

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Fanta
Type Soft drink
Manufacturer The Coca-Cola Company Germany
Country of origin 1940
Introduced

Fanta is a global brand of fruit-flavored soft drink from the Coca-


Cola Company. There are over 115 flavors world-wide; however,
most of them are only available in some countries. The brand was
originally introduced in Germany in 1940, and was purchased by
Coca-Cola in 1960. Today it is available in 180 countries.

History
In 1940 Fanta was created by the German chemist Schetelig
during World War II in Germany, by the German Coca-Cola bottling
company in Essen. Due to war time restrictions on shipping between
Germany and the United States, the German bottling plant could not
get Coca-Cola syrup. The CEO of the plant, Max Keith, needed a
product to keep the plant in operation and devised a fruit flavored
drink made from available ingredients.
Using apple fiber remaining from cider pressing and whey, a
byproduct from cheese manufacture,
Fanta was created and became quite popular. The original
German Fanta had a yellow color and a different flavor from that of
Fanta Orange. The flavor varied throughout the war, depending on the
ingredients used.
The name 'Fanta' was coined during an employee contest to
name the new beverage. Keith told them to let their Fantasie (German
for "imagination") run wild. On hearing that, salesman Joe
Knipp
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spontaneously arrived upon the name Fanta.


s

maaza
Type Fruit juice
Manufacturer The Coca-Cola Company
Country of origin India
Introduced 1976
Variants Maaza Orange, Maaza
Pineapple Related products Slice, Frooti

Maaza is a Coca-Cola fruit drink brand marketed in India and


Bangladesh, the most popular drink being the mango variety, so much
that over the years, the Maaza brand has become synonymous with
Mango. Initially Coca-Cola had also launched Maaza in orange
and pineapple variants, but these variants were subsequently
dropped. Coca-Cola has recently re-launched these variants again in
the Indian market.
Mango drinks currently account for 90% of the fruit juice
market in India. Maaza currently dominates the fruit drink category
and competes with Pepsi's Slice brand of mango drink and Frooti,
manufactured by Parle Agro.
While Frooti was sold in small cartons, Maaza and Slice were
initially sold in returnable bottles. However, all brands are also
now available in small cartons and large PET bottles. Of late, the
Indian market is witnessing the entry of a large number of small
manufacturers producing only mango fruit drink.
Maaza has a distinct pulpy taste as compared to Frooti and
tastes slightly sweeter than Slice. Maaza claims to contain mango
pulp of the Alphonso ariety, which is known as the "King of
Mangoes" in India.

History
Maaza was launched in 1976 in India. The Union Beverages
Factory, based in the United Arab Emirates, began selling
Maaza as a

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franchisee in the Middle East and Africa in 1976. By 1995, it had


acquired rights to the Maaza brand in these countries through Maaza
International Co LLC Dubai. In India , Maaza was acquired by Coca-
Cola India in 1993 from Parle-Bisleri along with other brands such as
Limca, Citra, Thums Up and Gold Spot. As for North America,
Maaza was acquired by House of Spices in 2005.

Minute Maid
Minute Maid is a product line of beverages, usually associated with
lemonade or orange juice, but now extends to soft drinks of many
kinds, including Hi-C. Minute Maid was the first company to market
orange juice concentrate, allowing it to be distributed throughout the
United States and served year-round.
The Minute Maid company is now owned by The Coca-Cola
Company, and is he world's largest marketer of fruit juices and
drinks. It is headquartered in Houston, Texas, and employs 2,200
people. In 2002 the Houston Astros baseball team sold the naming
rights for their venue, subsequently anointed Minute Maid Park, and
the company now owns 8.5% of the team.
History
The National Research Corporation (NRC) of Boston,
Massachusetts, developed a method of concentrating orange juice
into a powder using a "high-vacuum process" in 1945. The US
Army had a need for 500,000 lb (227,000 kg) for the war, so NRC
created a new branch, the Florida Food Corporation. Led by John
M. Fox, the company won the government contract for $750,000.
The war ended and the contract was canceled before the factory
could be built, but with investment, the company moved forward with
a product.
Rather than selling powder to the public market, the company
decided to create frozen orange juice concentrate. A Boston
marketing firm came up with the name Minute Maid, like
Minutemen,

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implying the juice was quick and easy to prepare.


With limited funds for advertising, Fox himself went door to
door giving free samples, until demand skyrocketed. The ability to
purchase fresh-tasting orange juice at any time of year, far from
where oranges are grown, proved popular, and led to the company's
national success. The Minute Maid company was purchased by Coca-
Cola in 1960.
In 1973, the company released the first ready-to-drink, chilled
orange juice product in the United States.

KINLEY

Water, a thirst quencher that refreshes, a life giving force that washes
all the toxins away. A ritual purifier that cleanses, purifies,
transforms. Water, the most basic need of life, the very sustenance
of life, a celebration of life itself.
The importance of water can never be understand. Particularly in a
nation such as India where water governs the lives of the millions, be
it as part of everyday ritual or as the monsoon which gives life to the
sub-continent.
Kinly water understands the importance and value of this life giving
force. Kinley water thus promises water that is as pure as it is meant
to be. Water you can trust to be truly safe and pure.
Kinley water comes with the assurance of safety from the Coca- Cola
Company. That is why they introduced Kinley with reverse-osmosis
along with latest technology to ensure the purity of their product.
That’s why they go through rigorous testing procedures at each and

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every location where Kinley is produced. Because they believe that


right to pure, safe drinking water is fundamental. A universal need,
that can not be left to chance.

Channels
Grocery – Outlet primarily engaged in retailing of food & various
household items. It includes Grocers (Outlets dealing mainly in
grains, provisions, spices, edible oil, vanaspati etc.) and General
Stores (Outlet selling items of day to day requirements & stocking a
variety of branded products)

E&Dtypes 1 – Outlet selling items of eat which are being consumed


primarily standing in the outlet or being taken away for Future
Consumption. Does Not Have Place To Sit. It includes
bakery / sweet shops/ QSR / juice centers / soft drink shops/ Tea
shops etc.

E & D type 2 – Outlet selling items of eats which are being


cooked/made within outlet possibility of consuming those products
within the outlet.
TheOutletShouldhaveAPlaceToSit.It includes Sit down
restaurants / Bars / Dhabas / Cafes etc.

Convenience- includes outlets which are small stores, generally


accessible locally. These are often located alongside busy roads. It
includes Chemists / STD Booths / PAN – Beedi shops, etc.

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HINDUSTAN COCA-COLA BEVRAGES

Class
Bronze- Those outlets, which sells <= 200 carets per year.
Silver- Those outlets, which sells 201 - 499 carets per year.
Gold- Those outlets, which sells 500-799 carets per year.
Diamond- Those outlets, which sells more than 800 carets per year.

Data Interpretation
1) What do you
Type of Channel hold?s
a) E & D

b) Grocery

c) Convenience

d) Other

E&D 30
%
Grocery 40
%
Convenience 20
%
Other, Please specify 10
%

Page 51 of 51
HINDUSTAN COCA-COLA BEVRAGES
HINDUSTAN COCA-COLA BEVRAGES

Channels

45
40
35
30
25
20
15
10
5
0

E&D Grocery Convenience Other

INTERPRETATION:
By knowing the above graph, E&D is 30 %, Grocery is 40 %, Convenience is 20 % ,
Others is 10 %.

Here, GROCERY having highest % and OTHER’Shaving lowest %.

2) If there are no drinks in the outlet, Are you willing to sell soft drinks ?

a) Ye

b) s

No

Yes 90
%
No 10
%

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HINDUSTAN COCA-COLA BEVRAGES

Response

100
90
80
70
60
50 90
40
30
20
10
0 10

YESNO

INTERPRETATION:

By knowing above graph, willing tosell soft drinks, YES is 90 %, NO is 10 %.

Here, YES is more than NO

3)Is threr any chilling equipment present?

a) Coke

b) Pepsi

c) Own fridge

d) Others

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HINDUSTAN COCA-COLA BEVRAGES

BRANDS RESPONDENT
S
Pepsi 30%
Own fridge 50%
Others 20%

HOLD

60

50

40

30

20

10

0
PEPSI OWN FRIDGE OTHER

INTERPRETATION:
By knowing the above graph, PEPSI is 30 %, OWN FRIDGE is 50 %, and
OTHERS is 20 %.Here, OWN FRIDGE having Highest %, OTHERS is Lowest %

4) The first and mostly preferred soft drink company?

a) Coca cola

b) Pepsi

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HINDUSTAN COCA-COLA BEVRAGES

c) Parle

d) Others

COMPANY PREFERRENC
E
Coca Col a 70%
Pepsi 20%
Parle 10%

Preference

PEPSI COCACOLA PARLE

INTERPRETATION:

By knowing the above graph, COCACOLA is 70 %,PEPSI 20%, PARLE is 10 %.


is

Here Coca cola having highest percentage, Parle is the lowest percentage

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5) why did you give more preference to Coca Cola ?

a) Brand name

b) Customer loyalty

c) Best offers

d) Above all

Brand name 20
%
Customer l oyalty 20
%
Best offers 10
%
Above all 50
%

60

50

40

30

20

10

Brand nameCustomer loyalty Best offers Above all

INTERPRETATION:
By knowing above graph, BRAND NAME is 20%,CUSTOMER LOYALTY is20%,
BEST OFFERS is 10% and ABOVE ALL is 50%.

Here ABOVE ALL is having highest percentage, BEST OFFER is having lowest
percentage.
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HINDUSTAN COCA-COLA BEVRAGES

6) If the preference is Coke co. then which product you prefer more

a) Coca cola b) Thumbs-up c) Sprite d) Limca

e) Fanta f) Mazaa g) Pulpy orange h) Kinley

Coca col a 10
%
Thumbs-up 40
%
Sprite 10
%
Limca 8%
Fanta 2%
Mazaa 10
%
Pulpy orange 5%
Kinley 15
%

Respondance

45
40
35
30
25
20
15
10
5
0

Coca colaThumbs- Sprite up LimcaFantaMazaa Kinley


Pulpy orange

INTERPRETATION:
By knowing above graph, Coca cola is 10%, Thumbs-up is 40%, Sprite 10%, LImca is
HINDUSTAN COCA-COLA BEVRAGES
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8%, Fanta is 5%, Mazaa is 10%, Pulpy orange is 2%, Kinley is 15%.

Here THUMBS-UP is having highest percentage and FANTA is having lowest


percentage.

A) If the preference is Pepsi which product you prefer more

a) Pepsi

b) 7-up

c) Slice

d) Mirinda

e) Mountain Dew

Pepsi 25
%
7-up 5%
Slice 20
%
Mirinda 15
%
Mountain Dew 35
%

40

35

30

25

20

15

10

0 Pepsi mountain Dew Slice Mirinda 7 -up


HINDUSTAN COCA-COLA BEVRAGES
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HINDUSTAN COCA-COLA BEVRAGES

INTERPRETATION:

By knowing above graph, Pepsi is 25%, Mountain dew is 35%, Slice is 20%, Mirinda
is 15%, 7 up is 5%.

Here MOUNTAIN DEW is having highest percentage and 7-Up having lowest
percentage.

B) If the preference is Parle then which product is you prefer more

a) Frooti

b) Appy

Frooti 60
%
Appy 40
%

70

60

50

40

30

20

10

Frooty Appy

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HINDUSTAN COCA-COLA BEVRAGES

INTERPRETATION:

By knowing above graph, Frooti is 60 % , Appy is 40% .

Here, FROOTI is more then that of APPY.

7) Which pack attracts the retailers to open the outlet

a) R G B

b) Pet Bottles

c) Tetra

d) Packs Cans

RGB 50
%
Pet Bottl es 40
%
Tetra Packs 2%
Cans 8%

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HINDUSTAN COCA-COLA BEVRAGES

60

50

40

30

20

10

RGB Pet Bottles Tetra Packs Cans

INTERPRETATION:

By knowing above graph, R G B is 50%, Pet bottles is 40%, Tetra packs is 2% and
Cans is 8%.Here R G B is highest percentage and TETRA PACKS having lowest
percentage

8) Which of the following promotions affect the opening and retaining of outlets

a) Schemes

b) Case re-fund

c) Price pack

Schemes 40%
Case re-fund 35%
Price pack 25%

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45
40
35
30
25
20
15
10
5
0

Scheme Case re-fund Price pack

INTERPRETATION:

By knowing above graph, Schemes is 40%, Case re-fund 35% and Price pack is 25%.

Here SCHEMES is having highest percentage and PRICE PACK is having lowest
percentage.

9) Do you think that the business of these soft drinks is seasonal

a) Yes

b) No

c) Neutral

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HINDUSTAN COCA-COLA BEVRAGES

Yes 45
%
No 35
%
Neutral 20
%

50
45
40
35
30
25
20
15
10
5
0

Yes No Neutral

INTERPRETATION:

By knowing above graph, Yes is 45%, No is 35% and Neutral is 20%.

Here YES is having percentage and NEUTRAL is lowest percentage

10) Are you able to access the different kinds of offers provided by the company
every day

a) Ye

b) s regularly

Not
HINDUSTAN COCA-COLA BEVRAGES
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c) Not at all

Yes 50
%
Not regul arly 30
%
Not at all 20
%

60

50

40

30

20

10

yes Not regularly Not at all

INTERPRETATION:

By knowing above graph, Yes is 50%, Not regularly is 30% and Not at all is 20%.

Here YES is having highest percentage and NOT AT ALL is lowest percentage.

11) According to you which of the following offers will benefit your business

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HINDUSTAN COCA-COLA BEVRAGES

a) Free bottles

b) Less MRP on purchase

c) Gift vouchers

Free bottles 45
%
Less MRP on purchase 50
%
Gift vouchers 5%

60

50

40

30

20

10

Free bottles Less MRP on purchase Gift vouchers

INTERPRETATION:
By knowing above graph, Free bottles is 45%, Less MRP is 50% and Gift vouchers is
5%.

Here LESS MRP ON PRICE is having highest percentage and GIFT VOUCHERS is
having lowest percentage.

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12) Are you satisfied with the margins given by the company

a) Ye

b) s

No

Yes 60
%
No 40
%

70

60

50

40

30

20

10

0
Yes No

INTERPRETATION:

By knowing above graph, Yes is 60% and No is 40%.

Here YES is having is highest percentage and NO is having lowest percentage.


HINDUSTAN COCA-COLA BEVRAGES
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13) Is company providing satisfied service, if any problem comes?

a) Yes

b) No

c) Neutral

Yes 50
%
No 30
%
Neutral 20
%

60

50

40

30

20

10

Yes No Neutral

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HINDUSTAN COCA-COLA BEVRAGES

INTERPRETATION:

By knowing above graph, Yes is having 50%, No is having 30% and Neutral is having
20%.

Here YES is having highest percentage and NEUTRAL is having low percentage.

14) What is the present position of the Coca cola in the market

a) Excellent

b) Good

c) Average

d) Poor

Excellent 60
%
Good 40
%
Average 0%
Poor 0%

70

60

50

40

30

20

10

Excellent Good Average Poor

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HINDUSTAN COCA-COLA BEVRAGES

INTERPRETATION:

By knowing above graph, Excellent is 60%, Good is 40% and Average and Poor is 0%.

Here EXCELLENT is having highest percentage.

15) Kindly rate the behavior of salesman towards the retailers

a) Highly satisfied

b) satisfied

c) dissatisfied

d) Highly dissatisfied

Highly satisfied 25
%
satisfied 60
%
dissatisfied 10
%
Highly 5%
dissatisfied

Respondence

70

60

50

40

30

20

10
Hiighly Satisfied Satisfied DissstisfiedHiighly dissatisfied
0

INTERPRETATION:

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HINDUSTAN COCA-COLA BEVRAGES

By knowing above graph, Highly satisfied is 25%, Satisfied is 60%, Dissatisfied is


10% and Highly dissatisfied is 5%.

Here SATISFIED
is having highest percentage and HIGHLY DISSATISFIED ishaving
low percentage.

Delivery (timeliness)
I. Kindly rate the behavior of sales man (Overall year) towards:

a) Highly satisfied

b) Satisfied

c) Dissatisfied

d) Highly dissatisfied

Highly satisfied 30
%
Satisfied 40
%
Dissatisfied 20
%
Highly 10
dissatisfied %

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HINDUSTAN COCA-COLA BEVRAGES

45
40
35
30
25
20
15
10
5
0

Highly satisfied Satisfied DissatisfiedHighly dissatisfied

INTERPRETATION:

By knowing above graph, Highly satisfied is 30%, Satisfied is 40%, Dissatisfied is


20% and Highly dissatisfied 10%.

Here SATISFIED
is having highest percentage and HIGHLY DISSATISFIED ishaving
low percentage.

Communication
II. Kindly rate the behavior of sales man (Overall year) towards:

a) Highly satisfied

b) Satisfied

c) Dissatisfied

d) Highly dissatisfied

Highly satisfied 30
%
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HINDUSTAN COCA-COLA BEVRAGES

Satisfied 50
%
Dissatisfied 20
%
Highly 0%
dissatisfied

60

50

40

30

20

10

Highly satisfied Satisfied DissatisfiedHighly dissatisfied

INTERPRETATION:

By knowing above graph, Highly satisfied is 30%, Satisfied is 50%, Dissatisfied is


20% and Highly dissatisfied 0%.

is having highest percentage and


Here SATISFIED HIGHLY DISSATISFIED ishaving
low percentage.

Visit Frequency

 III. Kindly rate the behavior of sales man (Overall year) towards:

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HINDUSTAN COCA-COLA BEVRAGES

oHighly satisfied

o Satisfied

oDissatisfied

d) Highly dissatisfied

Highly satisfied 40%


Satisfied 50%
Dissatisfied 10%
Highly 0%
dissatisfied

60

50

40

30

20

10

Highly satisfied Satisfied DissatisfiedHighly dissatisfied

INTERPRETATION:

By knowing above graph, Highly satisfied is 40%, Satisfied is 50%, Dissatisfied is


10% and Highly dissatisfied 0%.

Here SATISFIED is having highest percentage and HIGHLY DISSATISFIED ishaving


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73
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HINDUSTAN COCA-COLA BEVRAGES

low percentage.

Findings:

 It is found that Coca-Cola is market leader compared with Pepsi


the market challenger. The market share of Coca-Cola is 65%
and that of Pepsi is 35% only according to the areas where the
researcher had surveyed

 It is found that 11% are exclusive, 30 % are shared and 40% are
neither co and pc. It is found that 40% of outlet are needed to
horizontal expansion.

 Volume of consumption 200ml co is higher then others it is


necessary to launch 200ml products more. Even though during
the survey consumers demand more 200ml products of co for
business expansion in service industry.

 It is found that there is 44% outlet where there is no sales


growth assets

 It is found that 39% are not using any vernacular freeze so there
is a chance to provide freeze in these area to give business or
develop business and increase market share

 It is found that thumps up is leading brand with sales 26%


brands among the brand

 In the survey it is found that in gacchibowli , hitch city there is


a lot of chance to develop business

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 It is found that major survey was focused on service industry to


make horizontal expansion of coca cola

 It is found that there is a lot of chance in gaccchi bowli, hi-


tech city to make expansion

 Through the research it is found that boards are best display for
outlets

 Researchers found that coca cola is No.1 One in brand customer


demand more equity, brand equity is better measure of firms
performance

 Researcher found that gap between demand and supply is not


good

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SUGGESTIONS

The following are the some suggestions that can be implemented to


increase the customer satisfaction and the profitability of the company
for the horizontal expansion of coacola

 Supply distribution should improve in area like


kukatpally, gachhibowli,
 Training should be given to encourage marketers to promote coke
at new areas where there is not yet competitors involved
 Overall services should be improved for getting more sales and
being remained the market leader.
 They should deepen the partnership arrangement with suppliers
and distributors and make them feel as a part of the company.
 At every retail outlet there is limited products of coke product line, so
the distributor should supply every coke product line

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CONCLUSION

In the present competitive world the success of the


company depends on satisfying the customers as well as channel
members. This is the area of retail business and to win the race and be
on the top companies are out performing by spending more on trade
promotions. The channel members play a key role in increasing the sales
of FMCG products. So the company has to pay more attention on
distribution, promotion and availability of brand to win sales in the
market.

The study concludes that the Hindustan Coca Cola Beverages Pvt. Ltd
has to strengthen its product line by introducing new flavors and new
sizes. It also has to increase the stock holding and availability of cock
brands through motivating channel members by offering attractive
schemes and incentives

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Bibliography

Reference:

www.coca-cola.co.in
www.cocacolaindia.com
www.oligopoly.com

Books:

Marketing Management : Philip

Kottler Market Research (Naresh K.

Malhotra)

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HORIZONTAL EXPANSION

1. What type of channel did you hold ?

. E&D . Grocery . Convenience . Other

2. If there are no drinks in the outlet, are you willing to sell soft drinks ?

. Yes .No

3. How many number of customers did you hold per day?

<100 <200 <300 <400

4. Is there any chilling equipment present ?

.coke . Pepsi co. . Own fridge . Others

5. The first and mostly preferred soft drink company

. Coke co . Pepsi co . Parle . Others

6. Why did you give the preference coke co ?

. Brand name . customer loyalty . best offers . above all

7. a. If the preference is Coke Co. then which product you prefer more

. Coca cola . Thums up . Sprite . Limca . Fanta

. Mazaa . Pulpy orange . Nimbu fresh

b. . If the preference is Pepsi Co. then which product you prefer more

Pepsi . 7 Up . Slice Mirinda . Mountain dew . Tropican

c. If the preference is Parle Agro then which product you prefere more

. Frooti . Appy

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8. Which packs attracts the retailers to open a outlet?

. RGB . Tetra packs . Pet bottles . Cans

9. Which of the following promotions affect the opening and retaining of outlets?

. Schemes . Case refund . Price pack . Any other

10. Are you able access the different kinds of offers provided by the company every day

. Yes . Not regularly . Not at all

11. According to you which of the following offers will benefit your business

. Free bottles . Less MRP on purchase . Gift vouchers . SMS offers

12. Do you think that the business of these soft drinks is seasonal

. Yes . No . Neutral

13. Is company providing satisfied service, if any problem comes ?

. Yes . No . Neutral

14. After opening the outlet how does the company response?

. Satisfied . Highly satisfied . Dissatisfied . Highly dissatisfied

15. Kindly rate the behavior of sales man toward

. Highly satisfied . Satisfied . Dissatisfied .


Highly dissatisfied

I. Delivery

II. Communication

III.Visit frequency

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Area :

Name of the outlet

: Addres :

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